Last week’s New Models for Sales and Distribution webinar, part of SFA's In the Know webinar series, was geared towards introducing mature makers to innovative solutions in the specialty food space.
Ian Kelleher, co-founder of Peeled Snacks, food mentor, and entrepreneur lead a discussion on how to evaluate and consider new sales and distribution methods that have largely precipitated from the COVID-19 pandemic.
Before diving into the new models, Kelleher defined the roles of the distributor, manufacturer, and consumer, then used these terms to evaluate the “lifecycle” of a product and company. Here, he gave no-frills insight into the three distributor requirements: to help order, deliver, and bill. He noted that everything else is an “added value.”
By speaking of the three lifecycles simultaneously, Kelleher identified key areas where today’s solutions are innovating, providing examples of each: marketing, order processing, and payment systems. He warned that some attractive features, like financing distribution for equity, can lead to dangerous consequences. He encouraged skepticism when experimenting with how these companies can benefit a specialty food business.
Using three case studies, he evaluated companies that promised innovation in the direct-to-consumer, direct-store-delivery, and distributor spaces, none of which could “weather the storm.” One of those companies, ecommerce site jet.com, offered a unique solution to bulk purchasing. Kelleher highlighted how the most negatively impacted brands were those who partnered with the e-tailer just before it abruptly shuttered.
Kelleher also emphasized the importance of working together, as a specialty food community. “We are not alone because of associations like the Specialty Food Association but also because…you are all here, you are all passionate, and you all have reasons to share notes and help one another. You can even deal with distributors as a class," he said.
Kelleher will speak more about these opportunities at the upcoming Summer Fancy Food Show 2022 in a Maker Space session on Monday, June 13. The sessions in the Maker Space require the Maker Pass which is a one-price ticket - $99 for SFA members, $199 for non-members - that entitles holders to sessions that are designed for both new and running specialty food companies, with an emphasis on marketing, co-packing, sales, and brand building.
In the meantime, to learn more about how to navigate distribution and marketing channels, watch the webinar on demand in SFA’s Learning Center.
Related: Foodservice Distributor Highlights Specialty Suppliers, Eyes Expansion; How to Optimize the Food Value Chain to Maximize Success